June 1 is the deadline for enrolling in the Average Crop Revenue Election program
"We encourage all South Dakota producers to take a closer look at this program and run their numbers to determine if it is right for you. It also appears likely that wheat producers in South Dakota will qualify for an ACRE payment" says Gary Duffy, president of the South Dakota Corn Growers Association.
The preliminary national price triggers for ACRE payments are $3.83 for corn; $9.71 for soybeans and $5.84 for wheat. ACRE provides a safety net of 90% of the national price which is $3.45 for corn, $8.74 for soybeans and $5.26 for wheat.
"The ACRE program will not work for every farmer in every situation," says Acting State Secretary of Agriculture Jon Farris. But he too advises wheat, corn and soybean producers to visit with the Farm Service Agency "to see if this program fits within their management toolbox."
What ACRE is
ACRE is an alternative to the Counter-cyclical Payment program. It is based on crop-specific revenue rather than target price, fixed payment yield and crop base acreage.
If your farm does not qualify for an ACRE payment in 2010, either your yield will be very high or the national average price for the 2010 marketing year will be way above current levels
However, to enroll in ACRE you have to give up 20% of the direct payment and 30% of the marketing loan price. Last year about a third of South Dakota land was enrolled in the new program.
Contact your local Farm Service Agency for more information.
Source: SD Corn Growers Association